Yahoo Finance Sen. Rand Paul: Blocking sale of U.S. Steel hurts us and one of our closest allies | Opinion
This year, President Biden announced his opposition to Nippon Steel Corporation’s attempt to acquire an iconic American company, U.S. Steel. He wrote that it is “vital” for U.S. Steel to remain a domestically owned and operated steel company.
While this may be good short-term politics, it is extremely bad policy. Foreign investors in the United States employ millions of Americans across the country. No country boasts more investment in the United States than Japan, with more than $700 billion invested in companies located in the United States
Foreign direct investment — especially by a private company from Japan, one of our most important allies — should be welcome. It is key to promoting American competitiveness and economic growth. In 2022, international companies invested $5.25 trillion in the U.S. economy. That investment helped create over two million manufacturing jobs in the United States, which represents nearly one-fifth of America’s manufacturing workforce. Politicizing this deal between a private company from a staunch American ally and a domestic company signals to allies that their investment is not welcome in the United States.
For decades, Japanese investment in Kentucky facilities has created thousands of jobs, boosting our economy and uplifting communities. There are almost 200 Japanese-owned facilities in Kentucky, generating nearly 46,000 jobs. Toyota alone accounts for almost 10,000 of these jobs. This investment and the creation of these good-paying manufacturing jobs is good for Kentucky.
Toyota and its many peer companies in Kentucky are responsible corporate citizens highly integrated into the fabric of Kentucky life. I have visited their facilities and met with their employees on numerous occasions, witnessing how they work to better the lives of thousands of Kentuckians. Depriving other states of this kind of investment and the opportunity to create jobs is irresponsible and a grave mistake.
On the merits, it is hard to see how anyone could object to Nippon Steel purchasing U.S. Steel. Nippon Steel is a publicly traded company, the fourth largest steelmaker in the world, and headquartered in one of our strongest ally countries. It has been operating in the United States for years through its steel subsidiaries in Pennsylvania and West Virginia. In fact, Nippon Steel’s subsidiary in West Virginia is one of the largest customers of U.S. Steel.
Further, Nippon Steel promises to share its technology — possibly the most advanced in the world — to make U.S. Steel into the best steelmaker in the world.
Opponents make bogus arguments to justify blocking the transaction on national security grounds. They argue that allowing the acquisition of a domestic steelmaker by a private foreign company would undermine attempts to safeguard our nation against “bad actors.” But Japan has been a close ally of the U.S. for decades. In fact, in 2023 the House Select Committee on the Chinese Communist Party argued that exempting Japanese companies from reviews by the Committee on Foreign Investment in the United States was an important step in fortifying our national security.
Foreign investment is vital to creating jobs, improving the standard of life for American families, and strengthening our nation’s economy. For these reasons, I believe America should welcome Nippon Steel’s investment and promise to revitalize U.S. Steel.
U.S. Senator Rand Paul is a Republican from Kentucky.
